Real World Asset (RWA) tokenization is gaining a lot of traction in decentralized finance. With an expected valuation of $16T by 2030, on-chain tokenization of RWAs proves to be a crucial part of bridging TradFi and DeFi. However, the current Blockchain ecosystem lacks some of the essential components like compliance and regulatory frameworks, RWA-focused modules, fragmented liquidity and security.
MANTRA emerges as a Security First Layer 1 Blockchain that adheres to all the regulations and compliance frameworks. Built on top of Cosmos SDK for Developers and Institutions, MANTRA Chain focuses on solving all the hindrances that are restricting the smooth transition of RWAs on-chain. MANTRA Chain enables interoperable tokenization of illiquid assets across the IBC Network and offers various modules for Compliance, Assets and Tokens.
In this article, let us take a deep dive and explore the evolution and technology behind the MANTRA Chain.
The evolution of MANTRA Chain began with the introduction of MANTRA Finance, a project dedicated to bridging Traditional Finance (TradFi) with Decentralized Finance (DeFi) while prioritizing regulatory compliance and risk management. This foundational phase deepened through SOMA.finance, contributing to tokenization infrastructure and essential processes such as KYC, licensing, and governance policies. MANTRA DAO, in collaboration with MANTRA Finance, played a crucial role in shaping the governance model and community-driven vision, resulting in the formation of the Omniverse — a synergistic ecosystem integrating Mantra Finance, MANTRA DAO, and MANTRA Chain. MANTRA Chain strategically incorporates regulatory-compliant modules, utilizing licences obtained by SOMA.finance to attract institutional and retail users from traditional and regulated backgrounds. The integration with the Cosmos ecosystem further expands its user base, reflecting a purposeful blend of innovation, regulatory compliance, community engagement, and a user-centric approach in the journey of MANTRA Chain.
With the rise of MANTRA Chain, a paradigm shift has been introduced in the realm of Traditional Finance pivoting towards Decentralized Finance. Let us explore the technology behind MANTRA Chain by taking a deep dive into the technical architecture of MANTRA Chain.
MANTRA Chain is a modular Layer 1 blockchain that leverages Cosmos SDK for its architecture. MANTRA Chain encapsulates a secure and scalable infrastructure that allows developers to build interoperable dApps and Protocols. The Inter-Blockchain Communication (IBC) Protocol enables seamless communication and transfer of assets between different blockchains within the Cosmos ecosystem. The Cosmos SDK empowers MANTRA Chain to be easily upgraded to new features or improvements, ensuring future-proofing and the Cosmos SDK also enables cross-platform compatibility.
MANTRA Chain is a meticulously designed infrastructure that incorporates a robust node as well as network architecture. The node architecture on a broader level is divided into state machine, consensus and networking. Whereas, the network architecture is further divided into various layers namely Staking, Interoperability, Execution, Module and Application. To understand the MANTRA Chain in detail, we need to deep dive into the intricacies of node and network architecture. Let us explore these architectures in detail.
MANTRA Chain Node Architecture
The node architecture is one of the most crucial aspects of building a blockchain architecture. Here in the case of MANTRA Chain which is built on top of Cosmos SDK, incorporates the key components of the Cosmos ecosystem. Thus, embraces modularity, customization, and interoperability, aiming to deliver a seamless and secure experience.
The following are the core components of the MANTRA Chain Node Architecture:
- State Machine: The MANTRA Chain’s state machine, rooted in computer science principles, defines states and their transitions triggered by transactions. These state machines are replicated by CometBFT in the case of MANTRA Chain. Given an initial state ‘S’ and a transaction ‘T’, it computes a new state ‘S’. Transactions are grouped into blocks for efficiency, and the state machine generates a revised state ‘S’ from an initial state ‘S’ and a block of transactions ‘B’. The Cosmos SDK provides flexibility to define application state and transaction functions, ensuring adaptability. MANTRA Chain’s deterministic state machine ensures consistency, replaying the same transactions from a given state to result in the same final state, forming the foundation of reliability, trust, and consensus across its network.
- Modularity and Customization: MANTRA Chain’s architecture is built upon a modular design principle. Developers have the flexibility to select and customise various modules to tailor the blockchain’s functionalities to specific use cases. This modular approach allows for the efficient integration of features such as staking, governance, token issuance etc.
- Interoperability through IBC: Aligned with the broader Cosmos ecosystem, MANTRA Chain incorporates the Inter-Blockchain Communication (IBC) protocol. This protocol enables seamless interoperability, facilitating the secure transfer of assets and information between MANTRA Chain and other interconnected blockchains within the Cosmos network.
- Consensus Mechanisms: MANTRA Chain employs the Tendermint consensus algorithm, a Byzantine Fault Tolerant (BFT) mechanism commonly integrated with the Cosmos SDK. The utilization of Tendermint ensures robust security and validation of transactions, contributing to the reliability of the MANTRA Chain network.
- CometBFT for Networking and Consensus: The networking and consensus layers of the MANTRA Chain are facilitated by CometBFT, an application-agnostic engine integrated into the Cosmos SDK. CometBFT handles the propagation and ordering of transaction bytes, relying on a Byzantine-Fault-Tolerant (BFT) algorithm. Validators, selected through this consensus mechanism, play a crucial role in adding blocks of transactions to the blockchain.
- ABCI Interface: MANTRA Chain interfaces with CometBFT through the Application Blockchain Interface (ABCI). The ABCI acts as a bridge, passing transaction bytes to the MANTRA Chain application and receiving return codes indicating the success of message processing. It encompasses key messages such as CheckTx, DeliverTx, BeginBlock, and EndBlock, orchestrating the orderly execution of transactions and logic.
Now, with the above components it’s well understood how MANTRA Chain is intricately woven into the Cosmos SDK framework. Providing developers and institutions with a versatile and reliable platform to build various blockchain applications. Let’s now deepen our knowledge with the understanding of the network architecture of MANTRA Chain.
MANTRA Chain Network Architecture
The Network Architecture in the case of MANTRA Chain is a broader view of the different types of layers that are involved in the infrastructure. Each layer has its own counterparts and functioning which separates them from one another. Here’s a breakdown of all the layers in detail.
- Staking Layer: The staking layer plays a crucial role in the network as it helps in securing the network, incentivising active participation, and ensuring a decentralized and efficient governance model for the entire network. Participants can stake the native token through the Validator nodes or MANTRA DAO ensuring network equilibrium.
- Interoperability Layer: The interoperability layer of MANTRA Chain operates on IBC Protocol. This layer ensures that the regulatory and compliance modules as well as all the other features introduced in the Cosmos ecosystem by MANTRA do not stay limited to the chain itself but also expand to the whole Inter-Blockchain Communication Protocol ecosystem.
MANTRA Chain introduces a comprehensive suite of modules designed to redefine the landscape of developers and institutions building in the cosmos ecosystem. The module layer encapsulates all of these modules that address the critical needs of the blockchain ecosystem. Here’s a detailed overview of all the modules:
- MANTRA Compliance Module: MANTRA Compliance is a tailored solution by MANTRA, designed to address intricate regulatory challenges in cryptocurrency transactions and Web3 financial activities. Positioned on the MANTRA Chain, this module serves as a comprehensive toolset, offering streamlined and automated compliance management. The compliance module includes KYC and KYB protocols, AML and sanctions screening, transaction monitoring, risk assessment, and reporting tools. Operating on the network, it ensures real-time and transparent transaction tracking, enhancing fraud detection and reducing regulatory non-compliance risk. The On-chain Decentralized ID system provides a secure method for verifying individual identities through the issuance of Soulbound NFTs/IDs, serving regulatory KYC/AML purposes. Crucial to MANTRA Chain, this module promotes responsible and compliant engagement in the evolving Web3 regulatory landscape.
- MANTRA Token Service Module: The MANTRA Token Service (MTS) is a dynamic component in the MANTRA Chain ecosystem, providing a robust and versatile Software Development Kit (SDK) using Golang and NodeJS. MTS enables Web3 businesses to easily create, issue, distribute, and manage digital assets on the MANTRA network. Notably, it allows the creation of compliant digital assets, adhering to various regulatory frameworks. The permissioned model ensures that only approved entities can handle tokens on the platform, promoting responsible usage and compliance. MTS supports both fungible and non-fungible assets, with configurable yield, royalties, and low fees, creating a flexible and cost-effective environment for digital asset management. Overall, the MANTRA Token Service simplifies asset tokenization with a focus on practicality and functionality.
- MANTRA Assets Module: The MANTRA Assets Module is a core component in the MANTRA Chain ecosystem, offering a developer-friendly decentralized application (dApp) powered by the MANTRA Token Service SDK. This module simplifies the issuance of security tokens on the MANTRA network, providing businesses and individuals with an easy-to-use platform to launch tokens representing real-world assets. With MANTRA Assets, users can define token characteristics, track ownership, manage permissions, and automate processes like dividend distribution. By combining the power of the MANTRA Token Service SDK with the user-friendly features of MANTRA Assets, the module simplifies security token management, making it practical and accessible to a broader audience. In essence, MANTRA Assets streamlines the integration of real-world assets into the decentralized space.
- MANTRA Guard Module: The Guard Module empowers the MANTRA Chain with a robust mechanism that empowers verified on-chain users and decentralized applications (dApps). Driven by Decentralized Identifiers (DIDs), this innovative module ensures seamless identity verification across diverse dApps within the Inter-Blockchain Communication (IBC) framework.
The execution layer is the backbone of MANTRA Chain, combining Cosmos SDK, CosmWasm, P2P networking, and consensus mechanisms. It is one of the key layers in MANTRA Chain where the actual computation and application logic take place. The following are the core components of this layer in detail:
- Cosmos SDK: Cosmos SDK, is a modular framework that empowers the development of customized blockchains. This SDK provides a foundation for creating MANTRA an interoperable and scalable blockchain, allowing for the seamless integration of various modules. Here, in MANTRA Chain, the Cosmos SDK forms the bedrock, enabling developers to build and customize blockchain applications with ease.
- CosmWasm Smart Contract: CosmWasm is a powerful and efficient WebAssembly (Wasm) execution environment for smart contracts, tailored for Cosmos SDK-based blockchains. By employing CosmWasm, MANTRA Chain ensures compatibility with a wide range of programming languages, facilitating the development of versatile and secure smart contracts. This approach enables the platform to support a diverse array of decentralized applications while maintaining a high level of security.
- P2P Networking: The execution layer of the MANTRA Chain incorporates a robust peer-to-peer (P2P) networking protocol. This networking layer enables nodes within the MANTRA Chain network to communicate seamlessly, facilitating the propagation of transactions, smart contract codes, and block data across the network. The P2P networking layer ensures the decentralization and synchronization of the blockchain, enhancing overall network resilience and responsiveness.
- Consensus Mechanisms: MANTRA Chain employs Byzantine fault-tolerant (BFT) consensus mechanisms, such as Tendermint, to achieve a high level of security, performance, and consistency. Tendermint’s consensus algorithm provides a practical solution for scaling heterogeneous blockchains, offering reliability and preventing malicious actors from causing harm to the network.
The application layer of the MANTRA Chain represents the user-facing facet of the MANTRA ecosystem, where the functionality and utility of decentralized applications (dApps) come to life. At this layer, users interact with a range of applications, from financial services to real-world asset tokenization. Leveraging the capabilities of the underlying execution layer, which includes Cosmos SDK and CosmWasm contracts, the application layer ensures a seamless and intuitive user experience. It is in this sphere that decentralized finance (DeFi) solutions, identity verification, and various other services are harnessed. MANTRA Chain’s application layer stands as the interface through which users engage with the decentralized ecosystem, emphasizing accessibility, security, and practicality in its design and functionalities. Let’s take a look at the various counterparts of the application layer.
- MANTRA DEX: The MANTRA DEX stands as a cornerstone within the MANTRA Chain ecosystem. It leverages the robust infrastructure of the Cosmos ecosystem to facilitate efficient and secure real-world asset trading. This decentralized exchange ensures a smooth trading experience by integrating Automated Market Making (AMM) technology for fairness and efficiency. It also Incentivizes liquidity providers through farming mechanisms and enhances overall market liquidity. The platform offers a transparent order book for effective price discovery and trade execution, creating a user-friendly interface. With cross-chain compatibility, MANTRA DEX enables asset trading across multiple blockchains. Its high speed, low latency, and dynamic fee structure contribute to a sustainable trading environment. Integrated with the MANTRA Token Service and Compliance modules, MANTRA DEX serves as a crucial element in connecting TradFi and DeFi, providing users a secure hub for trading diverse real-world assets.
- dApps: The decentralized applications (dApps) flourish as user-centric solutions within the Application layer of MANTRA Chain. These dApps leverage the robust infrastructure beneath and span a spectrum of functionalities. By capitalizing on the capabilities of the underlying execution layer, these dApps ensure a seamless and intuitive user experience. Thus, The dApps within the Application layer embody accessibility, practicality, and security, fostering a dynamic ecosystem that caters to diverse user needs within the MANTRA ecosystem.
- For Developers: The application layer of MANTRA Chain allows developers to seamlessly integrate compliant solutions into their projects. MANTRA Chain’s modular tech stack ensures regulatory adherence and transparency for developers. The integration of CosmWasm provides a secure and straightforward approach for developers to build robust decentralized applications (dApps). MANTRA Chain’s multi-chain compatibility is facilitated through Cosmos IBC (Internet of Blockchains), offering developers access to cross-chain interoperability. With the MANTRA Token Service (MTS) and its SDK, developers can effortlessly and compliantly create, issue, and manage tokenized assets on-chain, enhancing the versatility of their applications within a secure and regulated environment.
- For Institutions: For Institutions, MANTRA Chain offers a KYC/AML Compliant Walled Garden, ensuring that all network participants undergo proper vetting following all the regulations. This provides a secure and regulated environment for institutional engagement. Institutions benefit from reduced costs for compliance and onboarding, as access to pre-screened Decentralized Identifiers (DIDs) eliminates the need for repetitive and expensive onboarding processes. Additionally, MANTRA Chain facilitates access to global markets in a compliant manner, enabling institutions to expand operations on-chain while improving trust, auditability, and data-sharing capabilities. The inclusion of a Passportable DID feature allows clients to complete KYC only once, providing access to multiple projects, thereby enhancing the user experience and lowering barriers to further business engagements.
Now after careful understanding, MANTRA Chain Architecture which is deeply integrated with the Cosmos ecosystem embodies meticulous design principles. The Node Architecture and the Network Architecture both play a vital role in MANTRA’s vision to build a Permissionless blockchain for Permissioned applications.
In the end, let us explore some of the varied use cases that can be built atop of MANTRA Chain and complement the utility of the network.
MANTRA Chain Use Cases:
- Tokenization of real-world assets (RWA):
MANTRA Chain facilitates the seamless tokenization of real-world assets, transforming ownership interests into digital tokens. This opens avenues for tradable assets, including art, commodities, and real estate, traded on its decentralized exchange (DEX).
- Identity System with Decentralized I.D. (DID):
Implementing a decentralized identity system (DID), MANTRA Chain streamlines onboarding processes for users, providing a secure and reusable method for KYC/AML compliance. The issuance of Soulbound NFTs enhances identity verification.
- On and Off-Ramping with Regulatory Compliance:
Anticipating increased regulatory scrutiny, MANTRA Chain ensures a compliant environment for both retail and institutional users. It offers accessible on-ramp and off-ramp services for a spectrum of assets, including fiat, equities, and tokenized securities.
- Governance and Continuous Upgrades:
MANTRA Chain distinguishes itself with on-chain governance, empowering community members to actively participate in discussions and decisions. This ensures continuous upgrades and improvements, fostering a dynamic and responsive ecosystem.
- IBC Compatibility for Token Movement:
Leveraging the Cosmos Hub, the MANTRA Chain facilitates the movement of tokens between zones through the innovative Inter-Blockchain Communication (IBC) protocol. This ensures seamless interoperability and secure transactions across the Cosmos ecosystem.
A Regulatory and Compliance ready World Above and Beyond Cosmos
In voyage, MANTRA Chain stands at the forefront of reshaping decentralized applications and real-world asset tokenization within the Cosmos ecosystem and beyond. In anticipating future regulatory shifts towards the application layer, MANTRA Chain focuses on building a protocol that supports diverse regulated activities. The platform is purposefully designed to facilitate the straightforward development of permissionless Web3 applications on a scalable and high-performance blockchain architecture. It provides a pathway for the seamless integration of decentralization with secure regulatory standards, compliance, and specific permissions. MANTRA Chain, in essence, is an emerging solution for bringing RWAs on-chain above and beyond the Cosmos and the entire IBC ecosystem. Paving the way for Permissionless blockchain for Permissioned applications.